NEXION Group Ltd (ASX: NNG) has announced the issuance of 800,000 convertible notes at $0.10 each, raising $80,000 on June 18, 2025. These notes were issued to Wong Chi Wai Roy, bringing the total number of outstanding convertible notes to 15,100,000. The purpose of this issue is to contribute to costs associated with a proposed acquisition, initially announced on April 23, 2024. The convertible notes are unsecured, mature on May 31, 2026, and accrue interest at a rate of 10% per annum, payable upon maturity, conversion, or early repayment.
Nexion retains the option to repay the convertible notes in cash before maturity. The notes are convertible into fully paid ordinary shares in Nexion at a conversion rate of $0.10 per share, subject to shareholder approval and ASX’s non-objection. Additionally, noteholders will receive 4.25 free-attaching options for each conversion share, exercisable at $0.001 each, expiring on June 30, 2026. These options and conversion shares are collectively referred to as conversion securities.
Conversion is contingent upon shareholder approval for the issue of conversion securities, ASX approval, and either Nexion confirming the proposed transaction will not occur, or the transaction not occurring by the date of maturity. Currently, the company anticipates repaying the convertible notes in cash, without issuing conversion securities. NEXION Group Ltd integrates software, compute, storage, network, and cyber security to provide hybrid-cloud systems. The company owns a 2MW data center in Perth, Western Australia, from which it delivers cloud services.
